The lending market may be the slowest it has been since the Great Recession, but agency refinances continue to close. Walker & Dunlop announced a spate of them for senior care clients throughout the Midwest. Joshua Rosen led the origination team on the deals.
First was a $14.895 million HUD refinance of a 156-bed skilled nursing facility in Aurora, Illinois. Located adjacent to a 136-bed supportive living community that sold earlier this year to Cascade Capital Group for $11 million, or $80,900 per unit, the facility is located about 40 miles west of downtown Chicago. Walker & Dunlop has been heavily involved with this senior care campus, having arranged the previous bridge debt on the SNF, the current HUD refinance, and an $11.03 million balance sheet acquisition loan for the supportive living community.
Next, Walker & Dunlop structured $14.96 million in HUD financing to take out existing bank and partnership debt on a 100-bed skilled nursing facility in Novi, Michigan. Built in 2014 with 90 units, the facility holds a five-star rating from CMS and provides more short-term skilled nursing and rehabilitative services. It is located one mile from a local hospital and 30 miles northwest of downtown Michigan.
Lastly, an 80-unit supportive living community in Kankakee, Illinois, obtained a $7.38 million HUD mortgage courtesy of Walker & Dunlop. Built in 2003, the community was purchased by a Chicago-area owner/operator in September 2016 for $5.7 million, or $71,250 per unit. At the time of the sale, it was just 70% occupied, with just under 90% of its census being Medicaid, and operating at a 12% margin on about $2.65 million of revenues. A renovation and stabilization plan was put into effect, and based on the current refinance, its value has risen considerably since then, likely well over $100,000 per unit.
